Parcel and Courier Freight
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- Marsha Norman
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1 Missouri Freight Transportation Economy on the Move Parcel and Courier Freight
2 Parcel and Courier Industry The parcel and courier industry makes up the largest portion of our lighter weight freight delivery. Missouri is home to 2 Federal Express hubs, 2 UPS hubs, and nearly 1,100 U.S. Postal Service facilities throughout the state including an air mail facility, a bulk mail center, and a mail bag facility. The parcel and courier industry currently employs 25,732 workers; 17,052 in U.S. Postal Service positions and 8,680 in courier positions. An Economic Driver The parcel and courier industry employment has a large impact on Missouri s economy generating an estimated $3.3 billion annually in Gross State Product, $1.7 billion in personal income and $111 million in new net Missouri general revenues. The more than 35,700 direct workers generate an estimated 21,900 indirect and induced spin-off jobs annually in Missouri through purchases of industry intermediate inputs and employee consumer spending. Commodity Flows Shipment values and tonnage for all modes combined increased in Missouri by roughly 20% over the five years surveyed. Parcel and courier shipments accounted for nearly 14% of the total value. Over $31.1 billion in Missouri commodities are shipped by parcel and courier modes. Pharmaceuticals and miscellaneous manufactured products make up nearly 32% of the total value of Missouri commodities shipped by parcel mode. Over $19.5 billion in commodities are imported by parcel and courier modes to Missouri. Electronics and miscellaneous manufacturing constitute nearly a third of Missouri imports by parcel and courier mode.
3 Trends in Parcel and Courier Shipments Shipment values and tonnage for all modes combined increased in Missouri by roughly 20% over the five years surveyed. Missouri companies shipped nearly $226 billion and 305 million tons of commodities throughout the U.S. Parcel and courier shipments accounted for nearly 14% of the value and less than 1% of the tonnage or $31.1 billion and 933 thousand tons. The Commodity Flow Survey combines parcel, courier, and U.S. Postal Service shipments into one category. The most recent survey reports a significant increase in parcel and courier shipping values (44%) and a small reduction in tonnage (-10%). Pharmaceutical products increased by nearly $4 billion in annual shipments over the past five years. Other substantial dollar gains were found in miscellaneous manufacturing products, mixed freight, precision instruments, machinery, furniture, and chemicals. Shipments declined in printed products, textiles, electronics, motorized vehicles/parts, and articles of base metal.
4 Shipment Weights The distribution of shipment weight by parcel mode primarily falls into four categories. The less than 50 thousand lbs group represents about 56% of total parcel value and 37% of the total tonnage. 60% 50% 40% Distribution of Value by Shipment Weight 30% 20% Parcel 10% 0% Less than 50 lbs lbs lbs lbs Shipment Distance Missouri parcel shipments average 784 miles to destination. The heavier the shipment the fewer the average miles traveled. The heaviest shipments average 434 miles to destination. Distance of Parcel Shipments by Weight More than 100,000 lbs 50,000-99,999 lbs 10,000-49,999 lbs 1,000-9,999 lbs lbs lbs lbs lbs Less than 50 lbs Parcel ,000
5 Missouri s Parcel Shipments to States ($M) Missouri s higher value parcel shipments are distributed mainly in the central region and the coastal states of Texas, California, New Jersey, and Georgia. Shipments within Missouri account for over 16% of the total value. Destination Value($mil) Missouri 4,991 Texas 1,999 Illinois 1,816 California 1,555 Kansas 1,379 Iowa 1,197 New Jersey 1,156 Georgia 1,059 New York 898 Ohio 759
6 Missouri s Parcel Shipments to States (Kilotons) Missouri s heaviest parcel shipments are distributed to the central region and coastal states of Texas, California, Florida, and New York. Missouri ships 15% of its parcels within Missouri itself and Illinois receives more than 7% of the total parcels shipped from Missouri businesses. Destination Tons (thous) Missouri 140 Illinois 64 Texas 51 California 51 Florida 46 Kansas 36 New York 34 Ohio 29 Iowa 28 Pennsylvania 27
7 Missouri s Parcel Imports from States ($M) Missouri receives the highest dollar value of parcel shipments from the central states and populous coastal states of the U.S. Illinois and Tennessee comprise over 19% of total imports to Missouri. Coastal states of California, Texas, New York, and Florida deliver nearly 35% of total imports to Missouri. Origin Value($mil) Illinois 2,361 California 2,150 Texas 1,617 New York 1,606 Florida 1,424 Tennessee 1,422 Ohio 855 Kansas 813 Indiana 763 Minnesota 645
8 Missouri s Parcel Imports from States (Kilotons) Missouri receives the highest tonnage of commodities by parcel mode from the central part of the U.S. and populous coastal states. Illinois and Tennessee ship over 16% of the total tonnage to Missouri. Coastal states of California, Texas, and New York make up nearly 26% of total tons shipped by parcel mode to Missouri. Origin Tons (thous) Illinois 57 California 50 Texas 43 New York 25 Tennessee 20 Florida 19 Ohio 18 Minnesota 18 New Jersey 17 Pennsylvania 16
9 Missouri s Top Parcel Commodity Shipments to States Over $31.1 billion in Missouri commodities are shipped by parcel and courier modes. Higher value shipments average 721 miles to destination while higher tonnage shipments average 639 miles. Pharmaceuticals and miscellaneous manufactured products make up nearly 32% of the total value of Missouri commodities shipped by parcel mode. These high dollar commodities predominantly move to the surrounding states and populous coastal states. Printed products and miscellaneous manufactured goods make up 35% of the total tonnage shipped from Missouri. Parcel Shipments within Missouri
10 Top Missouri Commodities Shipped to States MO Commodities Value($mil) Pharmaceutical products 6,242 Miscellaneous manufactured products 3,767 Printed products 3,267 Electronic & other electrical equipment 3,144 Mixed freight 1,906 Machinery 1,204 MO Commodities Tons (thous) Printed products 174 Miscellaneous manufactured products 152 Mixed freight 94 Electronic & other electrical equipment 58 Articles of base metal 55 Paper or paperboard articles 51
11 Missouri s Top Parcel Commodity Imports from States Over $19.5 billion in commodities are imported by parcel and courier modes to Missouri. Higher value shipments average 1,155 miles to destination while higher tonnage shipments average 1,040 miles. Electronics and miscellaneous manufactured products represent 27% of total commodities imported and 21% of the tonnage shipped. Illinois and California constitute nearly half of the electronics imported into Missouri. New York, Illinois, and California make up nearly half of the miscellaneous manufactured products travelling to the state.
12 Top Missouri Commodities Imported from States MO Imported Commodities Value($mil) Electronic & other electrical equipment 2,994 Miscellaneous manufactured products 2,275 Precision instruments and apparatus 1,537 Textiles and leather 1,110 Machinery 778 Articles of base metal 384 Printed products 327 Pharmaceutical products 289 MO Imported Commodities Tons (thous) Miscellaneous manufactured products 51 Electronic & other electrical equipment 43 Textiles and leather 30 Printed products 15 Articles of base metal 14 Plastics and rubber 14 Machinery 11 Precision instruments and apparatus 9
13 Sources U.S. Census, American Fact Finder Commodity Flow Survey Regional Economic Models Incorporated TREDIS Transportation Modeling U.S. Postal Service Federal Express United Parcel Service of America Inc. U.S. Bureau of Labor Statistics, Quarterly Census of Employment and Wages Note The recent release of the American Fact Finder Commodity Flow Survey by the U.S. Census describes the values, tonnage, and distance of state to state shipments. The information updates a 2002 survey and includes detailed estimates by modal activity (truck/barge/rail), commodity, and industry. Intermodal activities (ie. truck and water, truck and rail) are also estimated using this survey. While origins and destinations are cited in this report, data collection limitations measure the origin of movement and may not represent the commodity origin of production or final destination of the commodity. Prepared by Tony Brite
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